Wealth Managers (very little PMs)
I split my banking between two Canadian banks. One for everyday banking with a HELOC for investment. The other is an online discount brokerage account.
Every couple of years, the everyday banker calls to see if they can be of assistance with offers on their products.
I’ve never had the parent Bank of my brokerage account call with an offer.
I was curious and had him go over the service he was offering.
Of course he wanted all my business.
As to the portfolio management, they still recommend GICs and very conservative ETF’s for dividend income. A certain percentage was invested to juice the portfolio. When prompted he said last year those in my “Risk category” (High Risk) had anywhere from 20-30% appreciation. Some higher. Very little was allocated to Precious Metals in his managed client’s accounts. Only if the client insisted. I told him the account we were talking about was 90% PM’s and the rest Resources. He was not recommending more than 5% PM’s. I could tell on the phone that he probably thought I was crazy.
I have DRIP accounts for dividend appreciation outside the brokerage which I have had for years and never gets touched. It’s been churning out a steady 10-15% return depending upon the year.
I do see the advantage of parking income generated through the year in a short term deposit until a client either re-allocates the funds or makes a withdrawal.
The takeaway from the conversation was the retail investor is not yet in PMs. This advisor still believes it’s too risky. He only handles high net worth clients. After a day like today , I could see his point but apparently we have a long way to go before the public enters the space.
By the time retail gets in, it will be time to begin selling.
The interesting question is if and when institutions climb aboard.
But the sector is too small, after they get past the majors.
They will go first, so watch volume for AEM, NEM, KGC, etc.
M&A also has to kick in, since insiders should get the earliest read.
Columbia
I met with my accountant today for year end etc
I asked him how many of his clients had any gold exposure
He pointed at me ……. “just you”
I said …….. so it’s not a bubble then is it ??
Onward Pilgrims
WD
Not even close
whats not even close matter…. if Farmers correct.
silver is brutal.. who wants to wait it out…. there are other better options. You want to wait a year for all yr pms to go up.
The GDX is the magnificent 7…. only a few amount to being held. The GDXJ is a junior mag 7.
This complex is too easily controlled.. except for the few magnificent.When rates drop maybe well see something..encouraging.